The Muamalat Newsletter Vol. 2 2023

Introduction The examination of the dynamics of Shariah governance, risk management and assurance that supports the building of a Balance and Just Society (ummatan wasatan) started with the foundation of good governance, risk management and Shariah compliance as the drivers for ummatan wasatan. From the view of governance, OECD (1999) suggests good governance to constitute the qualities of i. accountability ii. transparency iii. fairness iv. responsibility Risk management, on the other hand is built upon the notion of check and balance through self-assessment and audit for independent assurance. Finally, Shariah compliance is central to Shariah governance and assurance as the compliance to Shariah is the prerequisite for success. This is to take the guidance of the religion as the way of life (deen) that provides guidanceand input for continuous improvements to deliver the best state of iman (achieving the state of ihsan). The work to examine improvable dynamics of Shariah governance, risk management and assurance is motivated by a few triggers discussed in the problems statements of the study. The ultimate intention of the work is to derive to empowered Shariah governance, risk management and assurance that could serve as guiding principles, strategies or action plans within Shariah- based institutions to contribute to the achievement of the notion of ummatan wasatan. Kamal, H. (2015) in his works on wasatiyyah (moderation) considers ummatan wasatan as the community or nation that are having the attributes of justice, excellence and balance. In the context of an institution, it needs to stand the mechanism of check and balance through accountability practices. As an excellent community, it also has to be able to exemplify excellence to stand witness to other communities that aspires the same. Shariah governance, risk management and assurance are fundamental to deliver the following elements of ummatan wasatan, which the end results to the actualisation of growth and stability that represent a society that embodies excellence. Visionary Outlook on Shariah Audit as a Tool for Sustainability Risk Management Khan (1985) established a visionary outlook of what constitutes Shariah audit. Khan envisions that Shariah auditors are playing 33 FEM Newsletter | Dec 2023 Authors: Safeza Mohd Sapian, Zurina Shafii, Kasumalinda Alwi and Adlin Masood Faculty of Economics and Muamalat , Universiti Sains Islam Malaysia ShariahGovernance, Risk Management andAssurance in Shariah-BasedSectors: TheWay Forward